Naver's stock, which surged on news of a partnership with Nvidia for artificial intelligence (AI) infrastructure, reversed course and fell sharply the following day.
As of 2:04 PM on June 9, Naver shares were trading at 255,000 won, down 24,000 won (8.60%) from the previous trading day. The stock opened at 290,000 won and briefly climbed to 308,500 won before selling pressure caused a decline.
On June 8, Naver announced plans to collaborate with Nvidia on a global AI factory, capturing investor interest. The two companies plan to gradually expand their AI infrastructure, starting with a 55-megawatt (MW) operation in 2027.
The excitement surrounding the partnership was heightened by Jensen Huang's visit to South Korea, leading to a 9.02% increase in Naver's stock the previous day. However, the significant short-term rise prompted profit-taking, resulting in the stock's downturn.
Naver and Nvidia aim to jointly undertake a massive AI factory project that could expand to a capacity of up to 1 gigawatt (GW), sharing both the potential rewards and risks.
Analysts believe this collaboration will enhance Naver's competitiveness in the AI sector. DS Investment & Securities stated, "Naver has announced plans to build a global AI factory (data center) that can expand to a maximum of 1 GW in partnership with Nvidia. This is expected to establish Naver as a leader in Asia's AI capabilities," raising its target price to 450,000 won.
* This article has been translated by AI.
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